Dalian Wanda Commercial Management Group is working on releasing its offshore USD funds from pledge, aiming to use the funds for upcoming offshore maturity, according to two sources familiar with the matter.
Wanda Commercial is facing $400 million 6.875% notes due July 23 issued by Wanda Properties Overseas and unconditionally and irrevocably guaranteed by Wanda Commercial Properties (Hong Kong) Co., with the benefit of keepwell provided by Dalian Wanda Commercial Management Group.
The company pledged some of the
proceeds from previous offshore USD issuances during the first quarter of 2023 for onshore financings under the program known as “onshore financing with offshore guarantee,” (外保内贷) said the sources.
Wanda plans to pay back the onshore financings to release the USD funds from the offshore pledge in order to use those funds to help repay the maturing offshore notes, the sources added.
The company also told investors that it had wired sufficient funds to Shanghai Clearing House for the redemption of its CNY 1.575 billion ($217.7 million) medium term notes “20 Dalian Wanda MTN003” due July 10, said the sources.
The $400 million 6.875% due July 23 notes were indicated around 90.1 today, July 7, down 3.1 points, according to two buysiders.
Wanda did not respond to requests for comment as of press time.